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Jun 2, 2012

GATA | THE GATA DISPACH: BMO's Coxe expects gold-backed bonds in Europe

BMO's Coxe expects gold-backed bonds in Europe

3:23p PT Saturday, June 2, 2012
Dear Friend of GATA and Gold:
BMO market analyst Don Coxe today tells King World News that the likelihood is increasing that new bonds issued by the weaker nations in the eurozone will be backed by gold and that gold will be brought back formally into the international financial system, leading to a substantial upward revaluation. Why anyone would trust the gold pledges of nations that can't possibly fulfill their social welfare promises under any circumstances may be hard to understand, but anything like this is going to be construed as gold's superiority as money. An excerpt from Coxe's intervies is posted at the King World News blog here:
Meanwhile the King World News weekly monetary metals market review, featuring Bill Haynes of CMI Gold and Silver and futures market analyst Dan Norcini, has a hell of a week to discuss in audio posted here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

NYT Global Update: New Turmoil in Egypt Greets Mixed Verdict for Mubarak

Global Update


New Turmoil in Egypt Greets Mixed Verdict for Mubarak

Lawyers said former President Hosni Mubarak's life sentence as an accessory in the killing of unarmed protesters was vulnerable to appeal, and charges of corruption were dismissed.

At Museum on 9/11, Talking Through an Identity Crisis

Exquisite sensitivities surround every detail in the creation of the National September 11 Memorial Museum, which is being built on land that many revere as hallowed ground.

Weakened Economy Points to Obama's Constraints

The president has singled out Congress for rebuke while citing the impact of global woes on the economy. But in doing so he projects a message of powerlessness no leader likes to convey.

From the Magazine | The Innovation Issue

32 Ideas That Will Change Your Tomorrow

The fairy-tale view of history implies that innovation has an end but what we need keeps changing. Here is a guide to the ways your day is about to get better.

Sunday Review

Protecting Many Species to Help Our Own

Ecosystems of multiple species that interact with one another and their physical environments are essential for human societies.

Quakes Deal Irreparable Blow to an Italian Region's Cultural Heritage

For nearly two weeks now, Italians have been charting the extent of earthquake damage to historic buildings in the Emilia-Romagna region on a disaster map that continues to grow.

After a 41-Gun Salute, Queen Spends Day at the Derby

Saturday was the start of a four-day celebration marking 60 years on the throne for Queen Elizabeth II.

From the Tibetan Monastery at the Heart of Self-Immolations, an Explanation

Monks have been radicalized in the last four years by an occupation of a monastery that has amounted to one of the harshest crackdowns in Tibet.

It's Not Billions, but It Can Help Rescue an Artist

A number of small, private rescue funds have been lending a hand to a group that is definitely not in the too-big-to-fail camp: writers, artists and other creative types.

Lawsuit Shakes Foundation of a Man's World of Tech

A sexual discrimination lawsuit by Ellen Pao at the venture capital firm Kleiner Perkins has prompted wider discussion about the treatment of women in the tech world.

Privacy, Please: This Is Only for the Two of Us

In a natural evolution of social networking, more mobile apps are aiming for sharing within boundaries.

A Geneticist's Research Turns Personal

The benefits of human genome sequencing may be enhanced with detailed blood tests - as found in a case study involving a geneticist's own Type 2 diabetes.
Field Notes

More Guests for Less (Wi-Fi Required)

Some couples consider live-streaming their weddings because of relatives and friends who cannot attend the ceremony. Others do so in hopes that they will go viral.

Twitter Dynamos, Offering Word of God's Love

Twitter is courting Christian evangelical leaders, who have found the network to be surprisingly effective for building influence and spreading inspiration far and wide.

Lepchenko Continues Surprising Run to Round of 16

Varvara Lepchenko, who never advanced beyond the second round of any previous Grand Slam tournament, moved into the fourth round Saturday by defeating Francesca Schiavone.
On Soccer

Stain of Scandal Again Taints Italian Soccer

By Jeré Longman
With the European championships starting on Friday, Italy is enmeshed in yet another match-fixing scandal.

Purses Are a Sore Point for Players at Majors

Chief among player grievances is dissatisfaction with compensation at Grand Slam tournaments, for which players said their share was as low as 5 percent to 15 percent.
Richmond Journal

Plan to Tax Soda Gets a Mixed Reception

The link between obesity and poverty is close and complicated, as leaders in one city learn when they try to fight fat by making high-calorie beverages more expensive.

Gun Violence Wave Challenges Seattle's Notion of Security

With six killings last week, the number of homicides in just five months in Seattle reached 21, as many as in all of last year.

Warren Avoids Senate Primary in Massachusetts

After a month of floundering, Elizabeth Warren, the embattled Senate candidate in Massachusetts, gained the endorsement of the state Democratic Party.

The Doctor Who Wouldn't Vaccinate

Shakil Afridi's covert work for the C.I.A. as a doctor involved in a bogus vaccination campaign isn't just hurting U.S.- Pakistani relations. It's undermining health drives everywhere.
Op-Ed Columnist

The Segmentation Century

How do you govern a diverging world? The answer to that question might help in dealing with the economic crisis in Europe.
Op-Ed Contributor

Yemen Can't Do It Alone

The new president has made gains against Al Qaeda. But he has yet to win the hearts and minds of his countrymen, while a humanitarian crisis is looming.

BBC Breaking News: Hostages rescued in 'brave' operation

  Breaking News  

Hostages rescued in 'brave' operation

Four hostages including UK aid worker Helen Johnston have been rescued in Afghanistan in an "extraordinarily brave, breath-taking" operation, PM David Cameron says.

GATA | THE GATA DISPATCH: Morgan reportedly returns $600 million in MF Global customer funds

Morgan reportedly returns $600 million in MF Global customer funds

By Aaron Lucchetti
The Wall Street Journal
Friday, June 1, 2012
J.P. Morgan Chase & Co. has returned roughly $600 million that was ensnared at the bank when MF Global Holdings Ltd. collapsed in October, people familiar with the matter said.
Most of the payments haven't been disclosed publicly, and a bankruptcy trustee representing customers of the failed securities firm might pursue J.P. Morgan for as much as several hundred million dollars in additional claims, according to a person familiar with the investigation.
Still, the New York bank's payments are a sign of progress in efforts to fill the estimated $1.6 billion hole left in customer accounts at MF Global. Money recovered by the bankruptcy trustee, James Giddens, eventually will be passed along to customers, though the amount depends on the outcome of continuing legal squabbles and negotiations.

 A spokesman for Mr. Giddens said in a statement that "substantive discussions" are under way with the nation's largest bank in assets for "the resolution of other claims" made on behalf of the former customers. J.P. Morgan continues to cooperate with the investigation, the spokesman added.
J.P. Morgan was one of MF Global's biggest creditors and handled many of its trades as the New York securities firm scrambled to save itself in late October. MF Global also transferred $175 million to fix an overdraft in one of the firm's accounts at the bank, according to congressional testimony.
Bank officials have said J.P. Morgan never intentionally accepted or held on to money that belonged in segregated customer accounts at MF Global. In May, the trustee announced that J.P. Morgan agreed to hand over $168 million that came from collateral held at the bank when MF Global filed for bankruptcy.
Bank officials contend that J.P. Morgan isn't holding more MF Global money, according to people familiar with the matter. Mr. Giddens hasn't reached the same conclusion and could demand additional payments, claiming that money passed through J.P. Morgan on its way elsewhere, according to a person familiar with his thinking.

If that happens, J.P. Morgan might counter that its repayments to date have exceeded $600 million, not including the losses suffered by the bank as a creditor to MF Global. While that $600 million could help lower the $1.6 billion shortfall, much of that money already had come back to MF Global before the shortfall estimate was made.

Mr. Giddens is expected to disclose in a report Monday details about where the money in customer accounts went, including the portions that are believed to have gone to J.P. Morgan.
The trustee also is expected to disclose more information about how the money went missing. It isn't clear how detailed the report will be, partly because other investigators have expressed concern that too much disclosure by Mr. Giddens could hurt their continuing probes.
MF Global moved money out of customer accounts to cover margin calls and meet other obligations. No one has been charged with wrongdoing.

Jon S. Corzine, the former MF Global chief executive, and other officials at the firm have told lawmakers that they didn't realize customer money had been tapped until employees told them the day before its bankruptcy filing about an apparent shortfall.

J.P. Morgan and MF Global had close ties. The bank facilitated trades on behalf of MF Global and in the firm's final weeks, J.P. Morgan officials spoke to Mr. Corzine and other senior MF Global executives about liquidating assets and dealing with ratings firms, according to people close to those discussions.
J.P. Morgan even considered buying MF Global, but then backed away amid questions about money transfers that came up three days before the securities firm filed for bankruptcy.
MF Global officials never provided written documentation that J.P. Morgan asked for on two transfers. The bank wanted to know if the money moves were in accordance with Commodity Futures Trading Commission rules. A J.P. Morgan lawyer later told lawmakers that the bank received verbal assurances from MF Global that the transfers were proper.

Many U.S. customers have recovered 72 cents of every $1 from their MF Global accounts. They are expected to get another eight cents per dollar soon.

The $1.6 billion shortfall also includes about $700 million stuck in the U.K. bankruptcy process and is affected by money being held back by the trustee for potential legal claims. On Friday, a U.K. court scheduled a trial for April 2013 on the trustee's issues in that country.